Market Update October 2018

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Check out this month’s Market Update from David Reyes, The Retirement Architect

Hi. Today, I want to share with you the market. I don’t talk a lot about the stock market. When I do my workshops and teachings, I do. But I felt it was a really good time to give you my insights on what’s happening right now. We’ve had a bull market, the longest bull market ever now – over 10 years. Market has been over 330%, you know, since 2009. If I was going to give this a baseball analogy, we’re in extra innings. And so, I’m just concerned.

I do a lot of reviews for you out there, radio show listeners, people attend my workshops, people that are referred to me. And you have way too much risk in your portfolio. During the one week here recently in October, just recently, the Dow dropped 1500 points in three days. I mean, unbelievable. The market lost about 7%. The S&P 500 was up 9% year-to-date. It went all the way down to basically flat at 1%. You have the NASDAQ down 9%. You have NETFLIX down 15%. Amazon down 13%. These are big moves in one week. This is in a few days period.

So I want to make sure that you’re prepared for this type of volatility – that most of you are not. And, fortunately, the longer we’re into a bull market, the more complacent you become. And that’s when it’s dangerous. You always use the Warren Buffetism, “When other people are fearful, be greedy. And when others are greedy, be fearful.” And everybody is greedy right now. Everybody is jumping on the train of owning stock, especially technology stocks.

Right now, the S&P 500 is overweight by about 30%, meaning that 30% of the S&P value is technology. Every time we’ve had that type of overvaluation of technology in 2000, it was that number, we lost 80% in technology. In the Financial Crisis, we had about 25% of the value of the S&P 500 was financials. Financials lost 80%. Kind of rhyme and reason, here. We’re getting, now, 25-30% overvaluation in technology because everybody is jumping on technology.

Again, I don’t want to scare you but you are probably talking the next time we have a down move, a bear market, you’re talking 30, 40, 50, 60%. I know it sounds outrageous but it’s not. So I just want to make sure you’re protected. You know, we have a philosophy at our firm. “We want to participate and protect every thing we do.” Participant and protect.

If you want to reach out to me to talk more about your portfolio, your risk, trusts, taxes, we do a complimentary second opinion that’s very, very powerful. A lot of information. So just reach out to us. Give me a call and look forward to talking to you.

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Julie Reyes is Chief Financial Officer and Chief Compliance Officer with Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk management strategies, retirement income distribution and generational wealth planning. Julie is a Certified Public Accountant (Inactive) and a California Real Estate Broker. She also holds multiple licenses in the insurance and financial services fields. Julie graduated from Pennsylvania State University, with distinguished honors in 1997 and began her career with Price Waterhouse, LLP that year specializing in tax and audit. She became a California Real Estate Broker in 2002. Julie has worked with David and Reyes Financial Architecture since the company’s inception, and uses her financial background and expertise to help a wide range of clients protect their assets, minimize their tax liabilities and maximize their cash flow.

David Reyes is the Founder of Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk managed strategies, retirement income distribution planning and social security planning. David works in collaboration with CPA’s, attorneys and other money managers to ensure that all planning is not only implemented but also integrated. This collaborative team approach seeks to ensure the highest probability of success.

David has been an advisor for over 20 years and holds multiple licenses and registrations in the financial, real estate, and insurance fields. David is featured in many magazines such as “Kiplinger Personal Finance Magazine,” “Boomer Market Advisor,” and is co-author of four books on estate and retirement planning. David’s latest book “The Little Red Book of Retirement” has recently been released. Currently David is working on a new book entitled, “Momma’s Secret Recipe to a Successful Retirement” with Jack Canfield. David advises many professional and public groups including CPA’s and Attorneys on retirement, taxes, estate planning, and asset protection. David is also the host of “The Retirement Architect Radio” heard every Saturday on 1210 AM KPRZ.

David is a distinguished graduate from UCLA’s Personal Financial Planning program and is a graduate of e Wharton Business School in their Retirement Income Planning Certification program. David has also been named 2015 Advisor of the Year by the National Social Security Association (NSSA) for his advocacy to educate retirees on maximizing their retirement income.

David and Julie have been blessed with three wonderful children, Morgan, Taylor and young David Reyes, III. David’s hobbies include Tennis, Church fellowship and spending time with his family.

Julie Reyes is Chief Financial Officer and Chief Compliance Officer with Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk management strategies, retirement income distribution and generational wealth planning. Julie is a Certified Public Accountant (Inactive) and a California Real Estate Broker. She also holds multiple licenses in the insurance and financial services fields. Julie graduated from Pennsylvania State University, with distinguished honors in 1997 and began her career with Price Waterhouse, LLP that year specializing in tax and audit. She became a California Real Estate Broker in 2002. Julie has worked with David and Reyes Financial Architecture since the company’s inception, and uses her financial background and expertise to help a wide range of clients protect their assets, minimize their tax liabilities and maximize their cash flow.

David Reyes

Founder, Chief Financial Architect David Reyes is an Investment Adviser Representative with Reyes Financial Architecture, Inc., a Registered Investment Advisory Firm specializing in portfolio risk management strategies, retirement income distribution and social security planning. He specializes in working with families and business owners by helping them achieve their personal and financial goals. As a fiduciary, David takes his role as an advisor personally and passionately. David works in collaboration with CPA’s, attorneys and other money managers to ensure that all planning is not only implemented but also integrated. This collaborative team approach ensures the highest probability of success. David has been an advisor for over fifteen years and holds multiple licenses and registrations in the fields of investment, real estate and insurance. He has been featured in many magazines and publications including Kiplinger’s Personal Finance and has been a contributing author in three books on estate and retirement planning. Currently, David is working on a new book, The Ultimate Retirement Blueprint, the 7 Secrets to a Stress-free Retirement. David can also be heard every Sunday at 9:00am on AM 760 KFMB on his weekly radio show, “The Financial Hour of Power”. David is a distinguished graduate from UCLA’s Personal Financial Planning program and is a graduate of The Wharton Business School in their Retirement Income Planning Certification program.